Economic recession affects bonuses in 2009

21/12/2010 15:00

Last year, the average annual wage increase of employees wass 2.5 percent relative to 2008. Annual wages include special payments, like holiday allowances, bonuses and end-of-year payments. Special bonuses rose by an average of 1.0 percent, but bonuses paid in the sector financial institutions dropped dramatically in 2009.

Financial institutions: lower bonuses

The average, annual wage increase the sector financial institutions was 0.7 percent relative to one year previously and obviously below the average level of the annual wage increase in the private sector. This is predominantly caused by the fact that bonuses were more than 9 percent lower than in 2008.

In the sector financial institutions, bonuses constitute a substantial part of total wages. Last year, 20.2 percent of the total wage consisted of bonuses versus 22.4 percent in 2007 and 2008. Bonuses paid to male, full-time employees appear to have been reduced dramatically. Employment decline in the sector financial institutions wass 0.8 percent in 2009.

Annual wages (including special bonuses) by labour year, 2009

Lower bonuses in manufacturing industry

Average annual wages in manufacturing industry were 1.5 percent up on 2008. This is also below the average across all sectors. This is mainly due to special bonuses, which were reduced by nearly 2.3 percent. Manufacturing industry has always been cyclically sensitive. Employment in the sector declined by nearlyy 4 percent in 2009.

Special bonuses, 2009

Downward trend not found across all sectors

In several parts of the private sector, bonuses were raised last year, e.g. the sectors hotels and restaurants, construction, public utilities. Higher bonuses in the sectors education and health care and welfare were mainly the result of agreements on end-of-year bonuses negotiated in long-term labour contracts.